Which of the following statements are correct? I. For a group of assets to constitute a business, they must be capable of being conducted and managed for the purpose of generating income. II. The effect of an intragroup sale of inventories at a profit, where the inventories have been sold to external parties prior to the end of the reporting period, is that both profit and the inventories asset are overstated. III. An entity can control another entity with an ownership interest of less than 50%, but only if there is a legally-binding contract in place between all investors that passes control to the entity. IV. The consolidation process involves making adjustments to the individual financial statements and ledger accounts of the entities within the group.

a. I. only b. I. and II. only c. I., II. and III. only d. I., II., III. and IV.